When will the Pension/Annuities/IRA Worksheet: Txble Pens/IRA(Reg Dist) update be available for NY State? I'm unable to complete my NY filing because of this?

[mkoutrakos1]

Like so many of you, I was only able to file my federal.  NYS will NOT accept a paper return if completed electronically so the advice that TT is giving about “file and amend later” does not work in all states.  Even more annoying is I’ve already been charged $220 by TT for both my federal and state e-filing, the latter of which still can’t be done.  

[giantberger]

TT now has an official post on this issue: 

https://ttlc.intuit.com/community/state-tax-forms/help/why-am-i-getting-a-check-[product key removed...

If you withdrew from retirement because of COVID-19 and have Form 8915-E on your federal return, you may have gotten a “Check this Entry” message stopping you from filing your state return.

We’re working hard to incorporate this new form into all the states in TurboTax. To ensure that your return is accurate, check back after March 19 to file your return. We should have it ready by then!

[Herb87]

Well at least they acknowledged the issue! - here’s to hoping it’s fixed around the 19th!

[nmb10605]

@krish008posted updated information in the NY COVID distributions delay thread related to this issue.

Apparently in most cases, NY state is NOT requiring form IT 558 simply b/c you withdrew funds from an IRA due to COVID-19.  Initially NY state was going to require that you included your entire covid-related IRA withdrawal in you NY state adjusted gross income for 2020, whereas the feds let you spread the withdrawal amount  over 3 years.  But NY state changed their approach and decided to follow the federal rules.  So if you took a withdrawal from an IRA due to Covid-19 and chose to spread the income over 3 years, you do NOT need NY state form IT 588.  NY state, like the feds, is allowing us to spread that income over 3 years.

The bug in the TT software is fixing it so that the software doesn't assume you need form IT 588 when it's not required. Hopefully they get it done by March 19th!  

[mgdanna]

That makes sense.

My distribution was automatically spread over three years on my NY return just like on my federal return.  

[giantberger]

Thanks for the explanation, @nmb10605! That's extremely helpful to know. Like @mgdanna, if I download my return and look at the numbers on the state forms, it shows the appropriate 1/3 of my total distribution since I'm spreading the tax payments out over 3 years. 

So frustrating that basically our forms are accurate, but because of the worksheet and the bug that doesn't tell TurboTax that the tax obligation is appropriately carried over from federal to state, we can't file yet. 

Anyway. Waiting till March 19 to see what we see. I was starting to look and see if any other tax prep options out there would allow you to file just the state return, but it seems like they all want you to pay for/file both state and federal. I suppose they probably allow you to pick to file just the state return, but it seems like a waste to pay for both, when I've already paid for both here on TurboTax. 

[platsambath]

I'm still getting this message when trying to file my NY state.

[EgorFed]

According to TT, March 19 is when the update is expected. Until then its just waiting.

[platsambath]

I can efile my federal first without my NY state right?

[SamS1]

I found this update to the NY pension exclusion.  It looks like there is a work around to get the error to clear.  Follow this link to review the work around.

The 1099 Series are informational reporting forms submitted to the IRS by third parties. The IRS then matches the form information to your tax return to insure all income is reported and taxed.  If you do not include a 1099 received from a third party on your tax return, you will receive a notice from the IRS asking why. This is the CP2000 matching notice.

[mgdanna]

Yes.  I did.  

run review and then pretend you want to file by mail and hit the file by mail button.  You will then be given a choice how to file each respective return.

I think you can choose “e-file federal” and choose “e-file state later” separately.

Let me know if this works.  I can get a little more specific if necessary once I’m home.

[giantberger]

@SamS1 The fix you linked to doesn’t apply to this situation on COVID withdrawals, the information on the 8915-E, and whether the NY state decoupling form is required. 

I’ve tried the “edit the 1099” solution multiple times and still get the error discussed in this thread. 

[EgorFed]

Yes. On the screen where its asking you how you want to file, select the "File by Mail" option. Then for the state select "Im not ready to file". Then you can continie filing as you normally would. This way you can file federal taxes, and then return to file the syaye taxes later.

[MarilynG1]

@giantberger The States are scrambling to change their tax regulations to comply with the Federal CARES Act (which was just very recently approved and is working in the Federal tax side of TurboTax).

TurboTax will incorporate the state forms as soon as they are available.

Click this link for more info on How to Contact your State Dept of Revenue where you may be able to get details for your state. 

This link has a listing of State Forms Availability. 

You can file your Federal return, and file your State return later.  This link gives info on Filing Federal and State Returns Separately. 

[giantberger]

UPDATE: TurboTax seems to have just released an updated online version (v. 754) and I was able to file my New York state return without the "Fix Return" error. 

HOWEVER, I did go back to Federal and edit/resave my 1099-R forms, which had a slight effect on the final numbers for federal and state returns, so that seems like a good idea, especially if you haven't filed your federal return yet. 

Glad this is out of the way and we can all move on with our lives!